Why You Should Never Compromise on Logistics Services and Quality
Nov 05, 2019 Comments (0)
There are a few main functions of logistics management:
Warehousing, Packaging and Storage, Transportation ,Shipping,Inventory Management and Planning, etc.
Plenty of entrepreneurs are having a tough time grasping these processes and there are more than enough examples of companies going bust for their poor delivery. Still, that doesn’t mean that they are completely unsolvable and even the smallest companies can get their act together with the right plan and management. Not to mention all the benefits a great logistics setup can bring to your company.
Benefits of Good Logistics Management
Improvement of Client’s Satisfaction
Let’s imagine that the customer wants to buy a couple of products from your shop. But, the shipping takes between 10 and 15 days. Will that person still be ready to spend their money?
According to one survey, not really. Only 15% of buyers are satisfied with the shipping options that online retailers are offering. Bad and slow transport services will most certainly have a negative influence on the customer’s satisfaction. Your potential buyer will visit the webshop of your competitors that are offering faster shipping. In the end, even if their product is slightly more expensive than yours, there is a good chance you’re missing out on that client.
Every entrepreneur should focus on optimizing the shipping options given to customers at checkout. Fast (and free) shipping can make your clients feel valued and return to your business in the future.
Reduction of Costs
Cheap shipping services, order picking errors, inventory inaccuracies, and returns bring additional costs but can be easily avoided. For example, if your inventory counts are wrong, you could sell products and promise fast delivery to a customer but then not be able to fulfill their order. To keep your customers happy through this experience, you’ll likely be crediting the customer and also shipping them a comparable product on your dime. Replacements and corrections just to keep the customer satisfied, can quickly become expensive.
Quality logistics services prevent things like this from happening, by constantly learning from past mistakes to improve and minimize their occurrence. You should track and quantify customer complaints, so you can bring actionable data to your internal operations team or fulfillment partner.
As we said in the beginning, bad logistics services will hurt your reputation. And in the business world reputation is crucial and these mistakes can and will cost you. If they constantly keep repeating, you will surely lose even the most loyal clients. Not to mention that bad reviews will also work against you with any new potential clients.
On the other hand, on-time deliveries are something everyone can appreciate. Handling those with care will surely boost your online reviews and get you a few more sales.
With a well-optimized inventory management and shipping process, you will save money that would otherwise be spent on returns and warehousing. Also, as mentioned before, if you’re offering fast and reliable shipping, customers will give you an advantage even if your products are slightly more expensive than those of competition.
Advantages of Collaborating with 3PL Companies
Logistics management can be a true nightmare, especially for first-time entrepreneurs. Outsourcing logistics services can be an excellent solution for several reasons.
3PL companies have been in the business for a long time. They know exactly how the entire process works. Thanks to their experience, they are able to suggest to business owners which moves are best and which to avoid.
Besides that, they also have the necessary business connections. These connections will ensure that the entire process works well. Imagine a first-time entrepreneur organizing transport independently. Without any prior experience, there is a big chance that they will make some huge mistakes that might cost them in both short and long-term.
Around 55% of consumers under the age of 25 said that same-day shipping is the main reason why they chose to buy a product from a particular brand. Thanks to 3PL companies, you can be on the list with those brands as well.
Most of them will offer two-day shipping which will definitely boost your value on the market. As we’ve said before, people are not ready to wait. They ordered your product with a few clicks and they want delivery to be as fast as possible and as cheap as possible.
More precisely – you will be able to save your time.
It is not enough to organize transportation or shipping of the items. You need to track and be informed at every moment what is happening with your products. That takes a lot of time, and you won’t be able to focus on some other things. With a 3PL partner, that will change, you will have more time to improve your marketing plan, work on production optimization, etc.
Quality logistics are characteristic of every successful business and it is necessary to constantly try to improve and optimize them. Bad logistics can cause a bad reputation among customers and some will never work with you again because of their disappointment. Are you ready for that?
Chris is the Technology Lead at Excelsior Integrated, a 3PL Fulfillment company serving high growth eCommerce clients from warehouse locations in Massachusetts and California. Chris has been with Excelsior for 7 years, through an exciting period of evolution. He now lives in New York City.